NewMarket Corporation Declares Q2 2025 Quarterly Dividend
The Board of Directors of NewMarket Corporation has announced the declaration of a quarterly dividend of $2.75 per share on the corporation’s common stock. This dividend is payable on July 1, 2025, to all shareholders of NewMarket who are on record at the close of business on June 16, 2025.
As a prominent holding company, NewMarket operates through its key subsidiaries—Afton Chemical Corporation (Afton), Ethyl Corporation (Ethyl), and American Pacific Corporation (AMPAC). These subsidiaries are central to NewMarket’s diverse operations, each contributing to the company’s long-standing legacy of chemical innovation, performance enhancement, and technical solutions across various industries.
NewMarket’s Core Operations and Subsidiaries
- Afton Chemical Corporation: Afton Chemical develops, manufactures, blends, and delivers chemical additives that significantly improve the performance of petroleum products. The company’s products are utilized globally across sectors including transportation, automotive, and industrial operations, playing a crucial role in enhancing the efficiency and sustainability of fuel usage.
- Ethyl Corporation: Ethyl Corporation, similar to Afton, is involved in the development and manufacture of chemical additives. The company’s products focus on optimizing the performance of fuels and lubricants, playing a vital role in enhancing the energy efficiency of various petroleum products. Their offerings are designed to meet the ever-evolving needs of industries ranging from automotive to industrial sectors.
- American Pacific Corporation (AMPAC): AMPAC operates in a specialized market, manufacturing materials primarily used in solid rocket motors for aerospace and defense applications. This business unit focuses on the research, development, and production of materials that play a significant role in supporting national security and advancing aerospace technology.
NewMarket’s diverse and innovative portfolio of companies demonstrates its commitment to driving value for its shareholders, customers, and employees. The company has become a vital force within the chemical manufacturing industry and is steadfast in its mission to deliver sustainable solutions, ensuring a positive impact on both the economy and society at large.
Commitment to Growth and Stability
The quarterly dividend announcement reflects NewMarket Corporation’s commitment to rewarding its shareholders and maintaining financial stability. By delivering consistent and reliable dividends, NewMarket underlines its solid financial performance and commitment to returning value to investors, even as it continues to evolve and expand its operations globally.
The company has been actively engaged in growing its operations, which is evident in its strategic focus on expanding capabilities, optimizing operational efficiencies, and making significant investments in research and development. NewMarket’s diversified business approach ensures long-term stability, making it an attractive investment option for shareholders looking for steady income and potential capital appreciation.
Some of the information contained within this press release, particularly statements about the company’s expectations, forecasts, and strategic initiatives, can be classified as forward-looking statements as per the meaning of the Private Securities Litigation Reform Act of 1995. Although NewMarket’s management believes that these expectations are based on reasonable assumptions based on the company’s understanding of its business and operations, there are inherent risks and uncertainties that could cause actual outcomes to differ significantly from what is stated.
A variety of factors could influence the company’s performance and impact its ability to meet projections, including, but not limited to:
- Availability of Raw Materials and Distribution Systems: The availability and cost of raw materials, as well as potential disruptions in distribution channels, could affect production schedules and costs.
- Disruptions in Production Facilities: Any disruptions at production facilities, particularly those that rely on single-sourced facilities or are exposed to natural disasters, could adversely affect production timelines and financial performance.
- Technological Advancements: NewMarket must constantly adapt to technological advancements. Its ability to respond quickly and effectively to changes in the industries it serves is critical for continued success.
- Intellectual Property Protection: Ensuring the protection of intellectual property is essential for maintaining a competitive advantage. Failure to protect proprietary technologies could result in competitive disadvantages.
- Raw Material Price Increases: Sudden or sharp increases in the cost of raw materials, especially those central to the company’s production processes, could significantly raise operating costs.
- Competition: NewMarket faces competition from other manufacturers and service providers. The level of competition in the market could affect pricing, market share, and profitability.
- Government Regulations: NewMarket is subject to a wide range of government regulations. Changes to these regulations, or new regulations, can create operational challenges and incur additional costs.
- Loss of Key Customers: The company is heavily reliant on relationships with key customers. The loss of significant customers or changes to contracts could impact revenue streams.
- Contract Changes with the U.S. Government: AMPAC’s involvement with defense and aerospace industries means that changes to contracts or termination of contracts with the U.S. government could affect the company’s operations.
- Workforce Challenges: The inability to attract, retain, and effectively utilize a highly skilled workforce could hinder the company’s ability to meet its strategic objectives.
- Cybersecurity Risks: As a large, technology-driven company, NewMarket is vulnerable to cybersecurity risks. Any information technology system failure, security breach, or data loss could lead to significant financial and reputational damage.
- Extraordinary Events: Unforeseen events such as natural disasters, terrorist attacks, and health-related pandemics can disrupt operations, supply chains, and customer demand.
- International Operations: NewMarket operates in several global markets, which exposes the company to risks such as tariffs, trade policies, political instability, and exchange rate fluctuations.
- Environmental Liabilities: The company must also navigate environmental liabilities, which could result in significant costs for cleanup, regulatory compliance, or legal proceedings.
- Pension Plan Liabilities: Underperformance of pension assets could result in the need for additional cash contributions to the company’s pension plans.
The Importance of Communication with Shareholders
NewMarket recognizes the importance of transparent and timely communication with its shareholders, which is why the company is committed to providing updates regarding both its performance and strategic initiatives. The company’s ability to deliver strong, consistent financial results, along with the declared quarterly dividend, reflects its commitment to returning value to shareholders and sustaining its long-term growth trajectory.
In addition to regular updates regarding dividends, NewMarket files comprehensive annual reports with the Securities and Exchange Commission (SEC). These reports include details about the company’s financial health, strategic initiatives, and risk factors. Shareholders are encouraged to review these reports, which are available upon request, for further insight into the company’s operations and outlook.
NewMarket Corporation’s decision to declare a $2.75 per share quarterly dividend underscores the company’s financial strength and its commitment to enhancing shareholder value. The company’s subsidiaries, including Afton Chemical, Ethyl Corporation, and AMPAC, continue to play a pivotal role in the global chemical industry, providing essential products and solutions across various sectors. As NewMarket navigates the evolving landscape of the chemical and materials manufacturing sectors, it remains focused on growth, innovation, and maintaining a robust financial position that benefits both its shareholders and customers.
Investors and stakeholders can continue to rely on NewMarket for updates on its performance, ensuring that the company remains a key player in the global marketplace for years to come.
